A payment voucher is a must for all kinds of payments, whether made by a person, a business firm through its bankers or directly. Hence this condition applies to all payments made as follows-
- Bank payments that are made directly for its business customers
- Cheque payments
- Cash payments
- Pay order and bank DDs or demand draft payments.
- Third-party payments that are made for a business firm. Here, a journal voucher needs to be prepared rather than a voucher.
Vouchers for each of these categories have a specific format. An individual should be aware of the voucher types and for their correct usage. So, let's dive into this article and know about payment, cash and bank voucher format.
Did you know?
Sec 9 (4) of the CGST Act mandates that if you buy goods from an unregistered supplier and such goods are liable to taxation, the RCM or reverse charge mechanism becomes applicable. The receiver can pay the GST in the GST payment voucher format instead of the supplier.
What are the different Voucher Types?
Small organisations and businesses have a limited number of bank and cash transactions, and hence a single voucher type can be used to record all the above types of payments. In larger organisations and companies, there are a fairly large number of cash payments and bank payments that occur daily. Hence, two types of vouchers are needed to record the transactions, namely:
- Voucher for Bank Payments: The bank voucher format or bank payment voucher is used if a cash payment is made through the business firm or its bankers.
- Voucher for Cash Payments: The cash payment voucher format or cash voucher is used if a payment is made in cash.
All vouchers have a source against which payment is made. The available sources of the payment vouchers are as below.
The cash voucher format is used for official payment vouchers made for materials procured or purchased during business operations. For example, a bill issued against a cash purchase or an invoice drawn for the material supplied and paid in cash.
Generally, in India, all tax payments are paid using the challan voucher format prescribed for this purpose and by the various concerned departments. Hence, when tax, fee or cash payments are made to these departments, the concerned department issues the challan counterfoil duly stamped or a signed copy of the challan to prove the tax or fee payment. For example, college fees, municipal taxes etc.
Receipts are vouchers issued by service providers of an organisation or those who receive payments from a running account of the business firm. Whenever an organisation buys goods or services from any business on a credit basis for which payments are made on a monthly/ weekly basis etc., a receipt is issued as proof of payment. Hence, a debit voucher format or receipt is issued as proof of an advance, deposit, etc. Such receipts are called the advance receipt or voucher, as is the case with a security deposit or an advance paid for services to be rendered etc.
Every business has several transactions, generally small ones where cash memos, bills or receipts are unavailable for purchases made for the business or official use. For example, a small Xerox copying bill for urgent business documents, conveyance by auto-rickshaw of a staff member travelling on official duties, or such petty small transactions. In such cases, the staff member draws up a staff voucher in the cash voucher format.
Payment Vouchers in GST
The payment voucher format can be downloaded in various formats like Microsoft Word, PDF, Excel or XLS and more. Under the Goods and Services Tax laws, all transactions involved in a business enterprise are mandatorily needed to be covered with an invoice, bill, challan or payment voucher. The type of voucher depends on the type of transaction of services and goods supplied to the business organisation.
The GST Payment Voucher is critical when paying GST under the RCM. It is used specifically to cover transactional payments between the GST taxpayer and the business’s unregistered suppliers. Since the unregistered taxpayers cannot issue a GST tax invoice, they must execute a GST payment voucher instead, under the reverse charge mechanism.
The RCM mechanism mandates the use of the new GST Payment Voucher. A registered GST taxpayer who receives services or goods from an unregistered supplier has to issue a payment voucher and pay the GST under the RCM or Reverse Charge Mechanism. The conditions under which the RCM works are:
- The GST registered taxpayer receives the services or goods from an unregistered supplier.
- If RCM applies to the services or goods bought by the GST registered taxpayer.
Cash payment voucher format generally have the following features in all other formats as well, such as:
- Payment issuing Company’s logo, name, address and telephonic contact number.
- A heading stating that it is a PAYMENT VOUCHER.
- A Date field where you enter the correct date of issue of payment.
- The Amount field in figures and words.
- The Mode of payment wherein you can mention whether payment is in cash or write in the cheque details, bank name and account number, etc.
- To whom the payment is made.
- Payee Details.
- Towards the field, details regarding the transaction for which payment is being made are notated.
- A voucher needs to be approved by an authorised signatory from the accounts department for payment approval.
- The amount in a voucher is paid by the cashier handling the transactions.
- The receiver’s signs in the signature field when they acknowledge having received the payment.
Given below is the cash voucher format in Word.
GST Payment Voucher Format Download
Payment Vouchers are available for free downloads in MS Word, PDF, .xls and Excel formats. Given below are examples of these formats.
Payment Voucher in Word format
Payment Voucher in Doc format
Payment Voucher PDF format
Also read: All About Vouchers in Tally.ERP 9
GST Payment Voucher format checklist
The particulars required to be filled in the GST cash payment voucher format in MS Word are briefly mentioned below:
- Supplier’s name, address and GST Number or GSTIN when a taxpayer is a GST registered supplier.
- The financial year’s unique voucher serial number (not to exceed 16 characters). For example, 2022-C-1101.
- Issue date of the payment voucher.
- The recipient’s name, address, and GSTIN. If no GSTIN, the name and address are to be recorded.
- Description of services/goods bought on which RCM is used, and tax is paid.
- The GST rate of GST taxation and tax amount charged under SGST, CGST, IGST and Cess applicable.
- Supply place details or where the transaction is effected. If it is supplied interstate, mention the state code and state name.
- Digital or Manual Signature and seal of the supplier or supplier’s authorised signatory/ representative.
Tally ERP-9 and entry of Payment Vouchers
If using Tally ERP-9, follow this procedure for a step by step guide on making the required entry of a payment voucher.
- Use the Tally gateway and head to the ‘Accounting Vouchers’ tabs in the main menu.
- Now use the F5 function option, enabling you to select the payment voucher from the right half of the displayed page.
- Click on ALT S, also called the Statutory Payment Voucher or STAT Payment option.
- Head to the Tax Type tab and select GST from the dropdown menu. This entry is then made as a Tally defined GST payment which will automatically reflect in the period’s GST returns.
- Take care to define whether it is a monthly or quarterly period for payment using the ‘period select’ option.
- Set your payment type to “Regular”.
- Choose the appropriate GST ledger for marking the Debit side (Dr) where the GST tax liability is pending and mark the Cr or Credit side of the bank account to make the tax liability payment.
- Ensure you enter the voucher with the bank name, account details, payment mode, date of payment etc.
The person who receives the services or goods must generate a GST debit voucher format PDF Payment Voucher for the amount paid as tax liability under the RCM. This applies to all transactions where the recipient is a registered GST taxpayer and receives RCM taxable goods or services from a non-GST-registered supplier. Once the payment is made, the journal requires to be updated in the accounting system of Tally. Here’s what the journal entry passed looks like:
By SGST/CGST/IGST/Cess A/c
To ABC Bank Account
Payment voucher precautions
The payment voucher format in Excel or any format like Word, PDF etc., is an important acknowledgement of having made a payment. Hence exercise caution while preparing the correct payment voucher by following these below-mentioned points.
- Draw the proper cash voucher format in Excel based on the payment details. For example, draw a Cash Voucher for a cash payment, and a Bank Voucher for a bank payment provided no separate bank challans are being maintained.
- Ensure you enter the ‘Date’ field and the cheque details/ number when the payment is made by cheque into the cash payment voucher .xls format.
- Number your vouchers serially, which is considered among the best practices in accounting.
- Write your amount paid in words and figures clearly and legibly to avoid tampering, corrections or malpractices.
- Debit the proper account head after the voucher is drawn.
- When making cash payments, take care that the Cash Account is credited with the amount and voucher number.
- When making a cheque payment, take care that the Bank Account is credited with the voucher and bank details.
- Ensure that the person receiving the payment signs your voucher.
- Vouchers need to be signed by the authorised signatory to enable the cashier to make the payment.
- The payment voucher should have proper source documents mentioned and attached to it.
Every recipient of goods and services has to generate a Payment voucher while making a payment on which Reverse Charge Mechanism is applicable. We are sure you have got clarity about the necessity of payment vouchers. Do you have issues with payment management and GST? Install the Khatabook app, a friend-in-need and one-stop solution for all issues related to income-tax or GST filing, employee management and more. Try it today!